No one likes to plan for a time when we might not have enough money to make ends meet. Often, when we plan or make financial decisions, we assume that our future self will have enough money to pay for the decisions we make today. Sometimes this turns out to be accurate, but sometimes it doesn’t.

And, if the economy slumps and we have a cost-of-living crisis, the pressure on our finances can be debilitating.

Before we look at how to cruise through a cost-of-living crisis, it’s helpful to remember this…

It doesn’t matter how much money you have, what savings you have or how frugal you can be; inflation affects everyone. Every. One.

The first thing we need to do in a situation like this is to acknowledge that we’re not alone. We are pressured to make certain purchases and live a particular lifestyle because we think everyone else is managing and coping fine. But, truth be told, most of us have to make serious adjustments to our budgets and financial decisions when times are tight. If you feel you can no longer afford your bills, there’s a good chance that you’re not alone.

This is helpful when we need to look at other strategies to reduce spending or realign our finances to weather the stormy volatility of increased living costs. Everyone needs to think differently in order to spend and live differently under a strained economy.

The upside to this is that necessity breeds innovation. We learn to make do with what we have. But, it’s not just about making ends meet. In hard times, people unite in extraordinary ways to support and encourage each other. Relationships are forged, communities are strengthened, and our stories are coloured with wonderful, unexpected experiences.

Downgrading a home, moving in with others, selling a car or changing schools are hard things to do, but they can create memories that we will cherish forever. And, it all comes down to our attitude.

This is how we cruise through a crisis; by adopting the right mindset.

Sure, we can scrutinise spending, scale back on expenses, renegotiate debt repayments and look for savings, but ultimately, it’s how we allow challenges and changes to grow us and make us better people. You’re not alone. Let’s chat.